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Nash equilibrium (Definition)

A Nash equilibrium of a game is a set of (possibly mixed) strategies $\sigma=(\sigma_1,\ldots,\sigma_n)$ such that, if each player $i$ believes that that every other player $j$ will play $\sigma_j$ then $i$ should play $\sigma_i$ That is, when $u_i$ is the utility function for the $i$ th player:

$\displaystyle \sigma_i\neq \sigma^\prime_i\rightarrow u_i(\sigma_i,\sigma_{-1})>u_i(\sigma^\prime_i,\sigma_{-1}) $

$\displaystyle \forall i\leq n$    and $\displaystyle \forall \sigma^\prime_i\in \Sigma_i $

Translated, this says that if any player plays any strategy other than the one in the Nash equilibrium then that player would do worse than playing the Nash equilibrium.




"Nash equilibrium" is owned by Henry.
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Cross-references: utility function, player, strategies, game
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This is version 5 of Nash equilibrium, born on 2002-07-24, modified 2002-09-30.
Object id is 3195, canonical name is NashEquilibrium.
Accessed 7621 times total.

Classification:
AMS MSC91A99 (Game theory, economics, social and behavioral sciences :: Game theory :: Miscellaneous)

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